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What is Health Insurance Portability?

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Health insurance is a very important requirement for everyone these days. Unlike any other insurance product, however, medical insurance comes with a waiting period, which has to pass before some of the rather expensive, though important, covers become available. Similarly, pregnancy and pre-existing diseases also require a waiting period. Now if you have spent your waiting period with one company and come across a better deal from another company, do you have to spend the waiting period again? This is where health insurance portability comes to your help. With health insurance portability, you can change your health insurance provider without actually having to go through the waiting period again.

How to apply for porting health insurance:

As per the guidelines set up by the Insurance Regulatory and Development Authority of India (IRDAI), which controls all insurance-related activities, a person holding a health insurance policy with any approved provider is eligible to apply for porting their health insurance from one company to another.

If you want to port your health insurance from one company to another, you will have to apply only during the period when the policy comes up for renewal. So, your old policy will end as per its schedule with the old insurer and the new policy with the new company will begin from the next day.

Your first step is to let your old insurer know in writing that you intend to port out your policy and specify to which insurer you want to move the policy to. This must be done at least 45 days before your current policy expires. The next step is also very important. You will have to renew your insurance as per schedule. You will be provided a grace period of 30 days for your renewal premium to be paid.

Health Insurance portability documentation:

As per the IRDAI, the process of portability requires minimal documentation. All that is required is a portability form, available from all insurer officesor on theironline health insurance portals. It has to be filled in and submitted along with the proposal form. The insurance company may ask for KYC or medical record-related documentation, if needed.

Advantages of health insurance portability:

• Portability allows you to move your policy from a general insurance provider to a specialized health insurance provider or vice versa.

• Portability is available for both personal and family floater health insurance plans.

• New insurer has to match or exceed the sum assured from the previous insurer.

• Insurance gets ported in a fixed time schedule laid down by IRDAI so you do not have to worry from your side.

Disadvantages of health insurance portability:

• Most insurance companies only allow porting between similar policies so policy terms, do not come with significant advantages.

• There may be higher premiums involved in providing certain additional covers.

• Since porting is only allowed during the renewal period, you get locked in for next year if you do not like your new insurer.

Possible reasons for health insurance portability rejection:

• Failure to renew the policy as scheduled or within the 30-day grace period

• Failure to comply with timelines by the applicant

• Incomplete documentation being submitted by applicant

• Any fake or forged documents submitted by the applicant

• Applicant’s refusal to undergo medical tests that may be needed

• Advanced age of the applicant

Do note that the insurance company is required to communicate their decision to the policyholder within 15 days of all the required documents being submitted. If they fail to do so, they will not be able to retain the right to reject the proposal as well.

Things to Remember for Health Insurance Portability:

• Have you compared both old and new policies to identify if the hassle is worth it?

• Have you checked claim payout of your old and new insurer? Higher is better!

• Have you compared the hospital network size of both insurers? Larger is better!

• Have you compared co-pay and exclusions in both plans? Lesser is better!

In conclusion, always remember a few things with regard to health insurance portability. Always stick to the timelines recommended by IRDAI and the insurer. Always ensure that complete and accurate documentation is provided and finally always ensure that you make renewal payments on time.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.